Companies calculate return on investment (ROI) for most of functions that are done in the company. And recruitment is just like any other function, and it should be measured.
How to calculate ROI in recruitment? You need to define metrics that will be used to analyze, what is working and what is not.
Time to fill a position. This is one of the most common metrics used to measure recruitment process. As time is money, the more time is spent on filling a vacancy, the more expensive recruitment process becomes. It begins with receiving a request from a department manager to singing a contract. As this metric is quite broad, it can be broken down into more parts, such as time spent of sourcing, telephone interviews, competence interviews (if interviewing has more rounds, they can be analyzed seperately, as well). Estimated time can be set for filling a position, and it can be compared to reality. What made the difference?
Quality of sources. If you are using more than one source, it is useful to see, which of them brings in most candidates. For example, you have posted a job to company’s Facebook page, posted it on Linkedin and various job boards. If most of candidates came from Linkedin, it might be cost- efficient to post this particular job to Linkedin and avoid other options.
Quality of candidates. If we go deeper than just analyzing amount of applications received, we need to also grade candidates by their correspondence to the role. How many even are worth interviewing and have appropriate competencies and experience. In some projects, quantity may be the most important metric, but in high- responsibility roles, quality definitely would be of most importance.
Frequency. Are you recruiting the same position every other month? It could be useful t analyze, how often this position is requested to fill, and what is the reason. It could be traced back recruitment, if the reason is that previous candidate did not succeed or the team is expanding, but it could also be because if someone management style or toxic colleague. nevertheless, it could be very healthy for the team and company in general, to figure the reason out.
Recruitment software staffin tracks every action made in the software, so the user can choose above mentioned and many more metrics to measure and see the information in easy-to-use graphics.
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More information about staffin on our website www.staffinhr.com
